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BlackRock Fund Plunges on Bad Loans
27 Jan
Summary
- BlackRock TCP Capital fund saw a 19% net asset value decline.
- Nonperforming loans surged to 10% of the fund's portfolio.
- Troubled BDCs were previously highlighted in a December report.
Investor anxiety is escalating in the private credit market following a substantial 19% decrease in the net asset value of a BlackRock-managed fund. The fund disclosed this steep decline late Friday, directly linked to a significant increase in nonperforming loans within its portfolio.
As of January 27, 2026, nonperforming loans have reached approximately 10% of the fund's holdings. This downturn has led to a notable drop in the prices of the fund's stocks and bonds.
Business Development Companies (BDCs) like this one typically provide high-interest loans to medium-sized corporations with subprime credit ratings. They fund these loans by issuing shares and borrowing from bond and loan markets, using the income to pay substantial dividends to their investors.
This particular fund was identified in a December report as one of several troubled BDCs, underscoring broader concerns within this segment of the financial market.
